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September 26, 2008

N-Viro International Corporation and Michigan State University Extend Term Sheet for Development Of Patented N-Viro(TM) Fuel Facility at T.B. Simon Power Plant

by Sam Savage

TOLEDO, Sept. 26 /PRNewswire-FirstCall/ -- N-Viro International Corporation, (BULLETIN BOARD: NVIC) , an environmental and materials handling company that owns patented technologies that convert various types of waste into the renewable biofuel N-Viro Fuel(TM), and Michigan State University, have agreed to extend their existing term sheet agreement through November 25, 2008.

The term sheet covers engineering and financial analysis to facilitate a long-term arrangement for the design, construction and operation of an N-Viro Fuel facility adjacent to the T.B. Simon Power Plant, which generates power for MSU. The extension was necessary to provide time to complete the unfinished processes as the original six-month deadline passed.

Timothy R. Kasmoch, CEO and President of N-Viro International, said, "Following the successful test at the East Lansing campus of MSU last year, both parties felt that six months would be adequate time to complete the discussions to advance our project. While the parties have proceeded diligently, more time was needed to complete the work we have started."

Robert Ellerhorst, Director of Utilities for Michigan State University, said, "The N-Viro Fuel proved to burn cleaner than coal alone. By utilizing the N-Viro Fuel, the University will be able to reduce the 550,000 tons of carbon dioxide our T.B. Simon Power Plant puts out each year. For the University, it is more than just being 'greener.' As a member of the Chicago Climate Exchange, we are committed to reduce our CO2 emissions by 55,000 tons by 2010."

Robert Bohmer, Vice President of business development at N-Viro, added, "In Michigan, biosolids from waste water treatment plants largely ends up being trucked to landfills. East Lansing alone trucks out 70-75 tons daily from the City, MSU and Meridian Township. By turning the waste into energy, the environment benefits, the University benefits and the City of East Lansing benefits."

The extension means that the work under the Agreement must be completed by November 25, 2008. The final agreement remains subject to the satisfaction of various conditions, including negotiation and MSU Board of Trustees approval. Following the execution of a final agreement, construction of an N-Viro Fuel facility next to the T.B. Simon Power Plant should commence in mid-2009.

The East Lansing plant likely would be the first N-Viro Fuel production facility in operation. The Company already has a successful facility in Toledo, Ohio, that has been in operation for 19 years. It also has a larger plant in Daytona, Florida, that is operating at 50% capacity and can process 750 tons of waste a day when at full capacity.

About NVIC

More information about N-Viro International can be obtained by contacting the office or on the Internet at http://www.nviro.com/ or by e-mail inquiry to [email protected]

Special Cautionary Note Regarding Forward-Looking Statements

The Company cautions that words used in this document such as "expects,""anticipates,""believes" and "may," as well as similar words and expressions used herein, identify and refer to statements describing events that may or may not occur in the future. These forward-looking statements and the matters to which they refer are subject to considerable uncertainty that may cause actual results to be materially different from those described herein. For example, while the Company expects to achieve certain revenues under the contractual arrangement, actual results will depend on, among other things, the amount of N-Viro Fuel(TM) used for treatment. Further, the success and profitability of the project would depend on the actual revenues and expenses of the Company, which may differ from the Company's estimates. Factors that may cause expenses to differ from the Company's expectations include, fuel and transportation costs, labor costs and costs relating to the treatment and processing of the biosolids and creation of the N-Viro Fuel. In addition, while the Company believes that trends in sludge treatment are moving in favor of the Company's technology, such trends may not continue or may never result in increased sales or profits to the Company because of the availability of competing processes. All of these factors, and other factors, will affect the viability and profitability of the development, construction and operation of new facilities utilizing the Company's technologies. Additional information about these and other factors that may adversely affect these forward-looking statements are contained in the Company's reports, including its Annual Report on Form 10-KSB, and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.